Biden Administration Invests in GlobalFoundries Expansion
WASHINGTON – The Biden administration revealed plans on Monday to grant $1.5 billion to GlobalFoundries, a leading computer chip company, to bolster its domestic production facilities in New York and Vermont. This move is part of the 2022 CHIPS and Science Act, designed to inject over $52 billion into reviving U.S. computer chip manufacturing and advancing research and development efforts.
Commerce Secretary Gina Raimondo emphasized the critical role of these chips, stating, “They power sophisticated military equipment, electric vehicles, ensure smartphones have the latest features, and enable faster Internet connections for Americans.”
Boosting Jobs and Economic Growth
The investment includes direct funding and loans totaling up to $1.6 billion, with an expected combined public and private investment of around $12.5 billion. GlobalFoundries plans to utilize the funds for constructing a cutting-edge chip factory in Malta, NY, expanding its existing plant in Malta in collaboration with General Motors, and upgrading its facility in Burlington, VT.
These projects are projected to generate 1,500 new manufacturing jobs and 9,000 construction jobs over the next decade. As part of the agreement, funds will also be allocated for worker training, and GlobalFoundries will extend child care benefits to construction workers.
Long-Term Vision and Bipartisan Support
Senate Majority Leader Chuck Schumer played a crucial role in shaping the law behind these funding initiatives. He highlighted the importance of securing the chip supply chain for the U.S. economy and national security, drawing parallels to the chip shortages during the pandemic that disrupted various industries.
Schumer stressed the Democrats’ commitment to making strategic investments that would pay off in the future, countering concerns about inflation and emphasizing the long-term benefits of initiatives like boosting chip production and infrastructure.
Reflecting on the broader implications of these investments, Schumer remarked, “People want to see we have a future. It makes a huge impression on the American people.”
